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Is Virtual Reality the Future for Insurance Companies?

While it may seem farfetched and confined to the video game industry, virtual reality programs are here. What was once thought to be impossible is becoming a reality via advancements in technology and years of refinement. Now, new applications of this technology are being used in the insurance industry. So, what does this mean for the future of this sector and the new risk exposures it is likely to bring? As we take a closer look at this new development, ensure your firm is secured with a comprehensive and customized Cyber Liability Insurance to protect your operations and the coming potential cyber threats.

According to Business Insurance USA, the virtual reality headset, Oculus Rift, was meant to create an immersive experience within video games- this is possible because of the super low latency head tracking and stereoscopic 3D view. However, after its initial release, other industries decided they could make use of the technology, as well.

For example, insurance companies can save money by conducting virtual reality tours through buildings and homes that need to be insured without ever stepping foot inside. Or, they can perform virtual driving tests with their clients prior to writing their policies- the applications are abundant. Not only does this save travel costs, but it allows the process to be completed more efficiently.

In addition, this technology allows for more work to be completed without the use of staff, reducing training costs and hiring costs. So, once the equipment is purchased, these day-to-day costs can be significantly reduced over time, ultimately improving the insurance company’s bottom line.

In the next few years, this will be readily available to the public. So, consider how this might be beneficial to your firm. However, these advancements are likely to come with their fair share of cyber security risks. As this is a new development, businesses are advised to be cautious when contemplating the use of these virtual reality headsets. So, weigh the pros and cons of the devices.

At NewMark Insurance Services, we understand the unique risks you face as a business owner. We also know the detrimental impact that a cyber-breach can have for your business and your reputation. In addition to Real Estate E&O, we offer comprehensive Cyber Liability Insurance among other coverages. Please contact us today for more information at (855) 777-6549.